From the City of Coral Gables Economic Development Department
Dear Valued Businesses,
We understand the overwhelming challenges you and your businesses are facing. We also understand how valuable our business community is to maintaining a healthy economy. Your success is our success.
Since the passage of the Federal Government's CARES Act, the Economic Development Department has been learning as much as possible about how you would benefit from this legislation. We've spent countless hours extracting the most important and relevant sections of the stimulus package so you don't have to. Below is the first of a series of analysis aimed at providing you with the information you need to make informed decisions about your future.
Together, we are going to successfully meet this remarkable challenge as one business community and City.    
On March 30, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Trump. The Act known as the “Paycheck Protection Program” (PPP) allocated $350 billion to financially assist small businesses and other eligible entities amid the CODIV-19 pandemic and economic downturn. The following are answers to FAQs regarding the PPP loan program for small businesses.
FAQ: Paycheck Protection Program

Where can borrowers apply? The borrower needs to complete the “Paycheck Protection Program” Loan Application including the require documentation. Thereafter, the application is submitted to a lending institution certified by the U.S. Small Business Administration (SBA) 7(a) lending program. Borrowers can call their local Small Business Development Center, Women’s Business Center or Beacon Council for assistance. Please note that this service is available for free.

What is the cover period of the PPP loan? The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. The borrower has the flexibility to select which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020.

Who is eligible to participate? Small Business with less 500 employees; Tribal business; Section 501(C) 19 Veteran organizations; and Section 501(c)(3) nonprofits (See: SBA affiliation standards); Independent owned franchises (See: SBA’s Franchise Directory); Independent contractors; gig economy workers; and self-employed individuals.

What is the maximum amount a borrower can secure?  The amount any small business is eligible to borrow is 250% or 2.5 of their average monthly payroll expense, up to a maximum of $10 million.

What activities can be funded with the PPP loan? Payroll costs (including benefits); Interest on mortgage obligations (incurred before February 15, 2020); Rent (under lease agreements before February 15, 2020); and Utilities (service began before February 15, 2020).

What count as payroll costs? Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee); Employee benefits (vacations, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit; State and local taxes assessed on compensation; and for sole proprietor or independent contractor (wage, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized for each employee).

When is the loan due? In 2 years

What is the fix interest rate? .5% (effective April 2, 2020)

Does the PPP loan require collateral? No

Does the Borrower have to personally guarantee the loan? No

Can the PPP loan be paid earlier? Yes, there are no prepayment fees.

Can the government forgive your PPP loan? If the employer maintains their respective payroll the loan would be forgiven. If the borrower has lay off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If the borrower’s total payroll expenses on workers making less than $100,000 annually decreases by more than 25 percent, loan forgiveness will be reduced by the same amount. If borrower had already laid off some employees, the loan can still be forgiven for the full amount of the borrower’s payroll cost if the employees are rehired by June 30, 2020. It is important to note that the loan is forgiven at the end of the 8-week period after the borrower takes out the loan. It is recommended that the borrower works with the lender to verify all cover expenses and the proper amount of forgiveness.

When can the borrower file the PPP loan application with the SBA certified lender?
  • Small business and solo proprietors on April 3, 2020
  • Independent contractors and self-employed individuals on April 10, 2020

When is the PPP application deadline? June 30, 2020
Below is a break down of the direct appropriation under Title I Keeping American Workers Paid and Employment of the CARES Act.
City of Coral Gables Economic Development Department